The Value-Based Business Model - Value Creation

In an efficiency seeking cost-based model or cost plus model, you start with the solution. Then you move to cost and price and you don't make the differentiation. And then the question of value is like, well, if it's valuable to you, you'll pay the price. Now if you flip that around and we think of a value-based culture, which to me is an innovation seeking culture,. So let's go back to our definition of innovation. Execution of a new idea, it solves a market problem, creates value for the customer and for us. If your focus is value creation, then you will price based on value.